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on P CO owns a 90% interest in S Co, purchased at a time when the book values of S recorded assets and liabilities were equal to fair values. During 2022, P sold merchandise to S cost 40,000 for $32,000.At 31/12/2022,75% of this merchandise was sold to a third party. Separate incomes for P&S are summarized as follows: P 900,000 400,000 500,000 Operating expenses 200,000 Separate income 300,000 What is the amount of unrealized income from intercompany sales? Sales Cost of sales Gross profit Select one: O O a. 6,000 loss b. 6,000 profit c. 2,000 profit d. 2,000 loss S 200,000 100,000 100,000 80,000 20,000

on P CO owns a 90% interest in S Co, purchased at a time when the book values of S recorded assets and liabilities were equal to fair values. During 2022, P sold merchandise to S cost 40,000 for $32,000.At 31/12/2022,75% of this merchandise was sold to a third party. Separate incomes for P&S are summarized as follows: P 900,000 400,000 500,000 Operating expenses 200,000 Separate income 300,000 What is the amount of unrealized income from intercompany sales? Sales Cost of sales Gross profit Select one: O O a. 6,000 loss b. 6,000 profit c. 2,000 profit d. 2,000 loss S 200,000 100,000 100,000 80,000 20,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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on Sales Cost of sales Gross profit P CO owns a 90% interest in S Co, purchased at a time when the book values of S recorded assets and liabilities were equal to fair values. During 2022, P sold merchandise to S cost 40,000 for $32,000.At 31/12/2022,75% of this merchandise was sold to a third party. Separate incomes for P&S are summarized as follows: Select one: O a. 6,000 loss b. 6,000 profit c. 2,000 profit d. 2,000 loss P 900,000 400,000 500,000 Operating expenses 200,000 Separate income 300,000 What is the amount of unrealized income from intercompany sales? O S ****** 200,000 100,000 100,000 80,000 20,000 ****** AURRENAL
Transcribed Image Text:on Sales Cost of sales Gross profit P CO owns a 90% interest in S Co, purchased at a time when the book values of S recorded assets and liabilities were equal to fair values. During 2022, P sold merchandise to S cost 40,000 for $32,000.At 31/12/2022,75% of this merchandise was sold to a third party. Separate incomes for P&S are summarized as follows: Select one: O a. 6,000 loss b. 6,000 profit c. 2,000 profit d. 2,000 loss P 900,000 400,000 500,000 Operating expenses 200,000 Separate income 300,000 What is the amount of unrealized income from intercompany sales? O S ****** 200,000 100,000 100,000 80,000 20,000 ****** AURRENAL
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